Monday, 16 August 2010

19:22 BST - SPX Update: 1 min chart close up

Whether this potential [A]-[B]-[C] is wave ii or still wave [4], it counts reasonably well still. If that is a triangle where I have (B) of the assumed wave [B], it makes it even less likely that the rally from the low today was wave (2) of [5] (but it can't be ruled out completely until we take out wave (E) of the triangle):

SPX 1 min close up:

Support seems to be around 1077, which coincides with the 38.2% retracment level and the wave (4) of [A] low. So, that area may be a logical stopping point for wave [B], but it can go lower.